Page 159 - Profile's Unit Trusts & Collective Investments - March 2026

Fund manager interviews Chapter 9

We believe SARB has established a strong and credible track record in containing inflation and
has earned the right for South African administered rates to continue compressing towards levels
observed in more developed markets. Accordingly, we expect to see additional compression in the
10-year yield and have revised our short rate expectations lower and now anticipate a further 50bps
to 75bps of rate cuts in 2026, taking the terminal repo rate to approximately 6.00% to 6.25%.
Further details on the fund can be found in the latest fund factsheet.
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Long Beach Managed Prescient Fund
Sector: South African–Multi Asset–High Equity Unit Trust
Awards
Portfolio manager: David Hansford 2026
WINNER
Benchmark: ASISA SA Multi Asset High Equity sector average For performance to 31 December 2025
Returns to investors 1 year 3 years
Long Beach Managed Prescient Fund 11.46% 25.51%
Sector Average 18.80% 14.80%
Inflation (CPI) 3.60% 3.91%
ProfileData performance stats to 31 December 2025: CAGR with dividends reinvested
Describe your investment universe
The Long Beach Managed Prescient Fund is Regulation 28 compliant and falls within the ASISA
South Africa Multi Asset High Equity Sector. The fund’s mandate allows the fund it to invest up to
75% of assets in equities and 45% offshore. The fund also invests in fixed income, listed property,
and may include commodity ETFs. The Long Beach Managed Prescient Fund is designed for
investors in the accumulation phase of retirement savings, and will generally look to maximise
equity exposure, and offshore exposure, within the limits of Regulation 28.
Comment on your investment year (January - December 2025) from a fund manager’s point
of view
The fund’s investment horizon is three to five years. January to December 2025, the fund returned
11.5% vs. the benchmark’s return of 18.8%. (The fund’s benchmark is the average of the ASISA
SA Multi Assets High Equity sector). Over the three-year period to 31 December 2025, the fund
returned 25.5% vs. the benchmark’s return of 14.8%. The fund had limited exposure to resources
or gold shares in South Africa, which counted against the fund in 2025, together with a full offshore
exposure during a period of the rand strength. For the three-year period to 31 December, the fund’s
long-term holdings in Cloudflare, Shopify, Richemont, Naspers, DoorDash and Uber made notable
contributions, together with holdings in the NewGold ETF, and Prescient Flexible Bond Fund.
Resources are cyclical businesses, with high capital intensity, declining assets (reserves), and are
dependent on volatile commodity price inputs. As such, resource shares do not generally fall within
Long Beach’s investment philosophy. As demonstrated by the Long Beach Managed Prescient
Fund’s 3-year performance, we are confident our investment philosophy of owning exceptional
businesses, which have a sustainable business franchise, benefit from structural growth trends,
have strong margins and cash flows, and a commitment to innovation with strong management
teams, are best placed to deliver long-term growth for our investors.
In terms of risk management, what methods or strategies are you able to use to protect your
clients’ investments?
The Long Beach Managed Prescient Fund does not engage in short-term market timing, or
currency hedging, and makes minimal use of derivatives. Instead, we focus on the long-term
ownership of exceptional businesses and hold a well-diversified portfolio of both local and global
assets. For retirement investors with a 3, 5, 10-year or longer investment horizon, high levels of cash
can be a drag on returns, and the fund generally targets low cash holdings.

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